The industry realized its most significant growth in the 1980s; at the time, most electronics manufacturing for large-scale product runs was handled by the OEMs in-house assembly.
[4] The development of surface mount technology (SMT) on printed circuit boards (PCB) allowed for the rapid assembly of electronics.
By the mid-1990s the advantages of the EMS concept became compelling and OEMs began outsourcing PCB assembly (PCBA) on a large scale.
By the end of the 1990s and early 2000s, many OEMs sold their assembly plants to EMSs, aggressively vying for market share.
EMS players largely focused on printed circuit board fabrication, leaving system assembly to the OEMs.
In recent years, EMS players have shifted production to low-cost geographies; embraced non-traditional industries including consumer electronics, industrial, medical and instrumentation; and added substantial vertical capabilities, stretching from design and ODM through system assembly, test, delivery and logistics, warranty and repair, network services, software and silicon design, and customer service.